Latest FERC request, page-3

Fair question Lilac

Does it look untidy......yes. Are they rushing...........most certainly, at this stage of the game it's all about critical path activities and approvals pretty much always are critical on the schedule. But, I wouldn't get too hung up about the detailed design issues. Design parameters are a moving picture and what was the design load or design assumption one day is soon superseded by someone else's slant on things the next. Also the context of the assumption needs to be understood as FERC may be misinterpreting data or assumptions. In a nutshell it could either be a little untidy work on LNGs behalf or FERC misreading. The thing to note is that SKEC take responsibility for that aspect of the project and contract put cost and time ownership on them.

What is highlighted by the FERC process, and it's an issue I've posted about previously is the level of detail FERC go into. I have been through the approvals process here in Oz and the authorities or regulators operate from a much much higher level. They never go into the levels of detail FERC do. I spoke to an American counter part and he confirmed that FERC massage the process from start to finish to a high level of detail.

For example, since we received our approval for the LNG Peak Shaver I'm currently working on, and soon to complete, we haven't seen anyone from the regulator/authority. We have a third party enviro consultant visit periodically but that's it. However, in the US the approvals team visit regularly, and, they aren't affraid to make comments and suggestions on minor detailed issues such as valve procurement and process configurations. The driver is, apparently, they are seeking some uniformity across the industry and that's a good thing.